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Beef supply chain disrupted by Immigration and Customs Enforcement activity

Three cattle organizations say recent activity from Immigration and Customs Enforcement in Oklahoma, Kansas, and Texas has caused additional challenges for the beef supply chain. A joint statement from the Kansas Livestock Association, the Oklahoma Cattlemen’s Association, and the Texas Cattle Feeders Association said the operations had a “massive chilling effect” on the legal, documented, skilled workers that put keep the cattle supply chain moving. 

Ag economist Charley Martinez, director of the King Ranch Institute for Ranch Management says operations slowed cattle slaughter last week. “Packing is very regional in terms of these fed cattle markets,” he says. “ So anything that can disrupt a region, especially right now where if we slow down chains by a day, that has tremendous impact now relative to a year ago when we had more space and more chain space available.”

Daily slaughter reports from the USDA showed significant decline in cattle processing for both Wednesday and Thursday of last week.   

He tells Brownfield it adds more volatility and disruptions to the supply chain.  “Which signals risk and volatility,” he says.  “That is a real problem that we’re seeing in terms of pricing.  And I think that is at play in certain segments of the country.”

The groups say these types of disruptions cause delays in shipping and processing for thousands of fed cattle, result in millions of dollars of lost revenue, and can ultimately lead to higher beef prices for consumers. 

There are also reports that the recent ICE activity has impacted operations at feedyards, dairies, feed and grain companies, and transportation hubs.